BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2270
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          (  Without Reference to File  )

          ASSEMBLY THIRD READING
          AB 2270 (Laird) 
          As Amended May 28, 2008
          Majority vote 

           WATER, PARKS & WILDLIFE      9-4APPROPRIATIONS      12-4        
           

           ----------------------------------------------------------------- 
          |Ayes:|Wolk, Caballero, Eng,     |Ayes:|Leno, Caballero, Davis,   |
          |     |Furutani,  Huffman, Lieu, |     |DeSaulnier, Eng, Huffman, |
          |     |Mullin, Parra, Salas      |     |Berg, Krekorian, Lieu,    |
          |     |                          |     |Ma, Nava, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Maze, Anderson,           |Nays:|Walters, La Malfa,        |
          |     |Berryhill, La Malfa       |     |Nakanishi,                |
          |     |                          |     |Sharon Runner             |
           ----------------------------------------------------------------- 
           
          WATER, PARKS & WILDLIFE      9-3                                
           
           -------------------------------- 
          |Ayes:|Wolk, Berryhill,          |
          |     |Brownley, Furutani,       |
          |     |Huffman, Lieu, Mullin,    |
          |     |Parra, Salas              |
          |     |                          |
          |-----+--------------------------|
          |Nays:|Maze, Anderson, La Malfa  |
          |     |                          |
           -------------------------------- 

           SUMMARY  :  Requires additional reporting on recycled water and  
          allows local limitations on salinity inputs.  Specifically,  this  
          bill  :  

             1)   Requires the Department of Water Resources (DWR) to  
               include the statewide water recycling targets in the study  
               of water needs, in conjunction with the California Water  
               Plan updates on a five-year cycle.

             2)   Requires urban water management plans to specify the  








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               quantity of recycled water available for use currently and  
               into the future 20 years.

             3)   Allows any local agency that operates a sewer system to  
               control residential salinity inputs, including inputs from  
               water softeners, after a finding by the State Water  
               Resources Control Board (SWRCB) or a regional water quality  
               control board (RWQCB), in certain proceedings, that  
               residential salinity control would help meet water quality  
               standards.

          4)Specifies the types of actions that local agencies may  
            implement to control residential salinity inputs to sewer  
            systems, but preserves local agency discretion as to how to  
            control salinity, including:

             a)   Require highest efficiency, commercially available,  
               self-regenerating, residential water softeners;

             b)   Require plumbing permits before installation of water  
               softeners;

             c)   Require water softeners to be hooked up only to hot  
               water;

             d)   Require removal of previously installed residential  
               water softeners; and,

             e)   Prohibit installation of water softeners.

          5)Requires local agencies to compensate owners of residential  
            water softeners for the reasonable value of the water  
            softener, if the local agency requires removal of such  
            softeners.

          6)Imposes the same standard for judicial review of a SWRCB or  
            RWQCB finding allowing local control of salinity inputs as the  
            standard of review for the underlying water quality action.

             7)   Changes certain recycled water reports from a quarterly  
               to an annual requirement.

             8)   Requires submission of annual recycled water reports to  
               the RWQCB.









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             9)   Makes legislative findings regarding recycled water.

           EXISTING LAW  authorizes use of recycled water under certain  
          conditions and imposes conditions on local agency limitations on  
          use of water softeners.

           FISCAL EFFECT :  Assembly Appropriations Committee estimates DWR  
          costs of $75,000 every five years starting in 2009-10 to include  
          and update more recycled water information in the California  
          Water Plan; and, in the hundreds of thousands of dollars  
          annually starting in 2008-09, to provide grants to local  
          agencies that adopt salinity input ordinances.  These costs may  
          be covered by appropriations from Proposition 84 bond proceeds.

           COMMENTS  :  The Water Recycling Act of 1991 set a 2010 target for  
          California to use 
          one million acre-feet of recycled water.  While there is no  
          definitive calculation of the amount of recycled water use,  
          recent estimates suggest 600-700,000 acre-feet of current  
          recycled water use.  The most recent California Water Plan  
          estimates future recycled water use at between 900,000 and 1.4  
          million acre-feet, in 2030.  This likely failure to meet the  
          2010 target has been attributed to several factors, including  
          inconsistent RWQCB regulation.  

          In response to concerns about the state's progress on recycled  
          water, SWRCB has developed a statewide policy, in order to  
          encourage greater use of recycled water.  That proposed policy  
          includes a requirement that the RWQCBs (except Santa Ana, which  
          already has a salt management plan) adopt salt management plans,  
          as increased salt loads in the source water makes recycling more  
          difficult.  Urban salinity discharges to the state's rivers and  
          streams also have received increased attention in recent years,  
          particularly in the burgeoning San Joaquin Valley.  The Central  
          Valley RWQCB has reduced allowable salt discharges.

          This bill would expand availability of information as to  
          recycled water use and allow local agencies to control one of  
          the most significant impediments to expanding recycled water,  
          residential salinity discharges to sewer systems.  Requiring DWR  
          to include recycled water in the California Water Plan study of  
          water needs would allow the state to adjust the targets as new  
          information on the progress of recycled water use emerges.   
          Submission of use data to the RWQCBs would improve public access  
          and monitoring of recycled water use, which is limited  








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          currently.  California would know better when it achieves its  
          statutory targets for recycled water use.

          The authorization of local regulation of salinity inputs,  
          particularly water softeners, is the more controversial part of  
          this bill, and arises out of a long history of legislative  
          debate over water softeners, dating back 25 years.  The Health &  
          Safety Code includes provisions for use of residential water  
          softeners and states that Californians have a "right to a water  
          supply that is effective and functional for domestic  
          requirements."  The statutory connection to water softeners  
          appears to imply a right to use water softeners to achieve that  
          "effective and functional" water supply.  The statute therefore  
          limits local agency authority to regulate softeners, requiring  
          the agency to make certain findings as to the necessity of such  
          regulation.  (California Health & Safety Code  116786.)  These  
          findings must be substantiated by an "independent study of  
          discharges of all sources of salinity," and the agency must  
          enforce limits on non-residential saline discharges before  
          limiting water softeners.  Limits on softeners may only be  
          prospective, barring any requirement of removal of existing  
          water softeners and allowing owners of such softeners to  
          continue discharging salt into community sewers.   Advocates of  
          this bill assert that these requirements are burdensome and  
          costly, discouraging local agencies from doing anything about  
          softeners' saline discharges, which can exceed a pound of salt  
          each day from each softener.

          After the state did not meet the 2000 target of 700,000  
          acre-feet of recycled water use, the Legislature created a task  
          force to examine, among other things, state and local  
          regulations that limit the use of recycled water. The 2003  
          Recycled Water Task Force report made the following  
          recommendation:

               Local agencies should be empowered to regulate the  
               discharge of residential water softeners in the same manner  
               as other sources of discharge into sewers. Legislation  
               should be proposed to amend the Health and Safety Code  
               Sections 116775 through 116795 to reduce the restrictions  
               on the local ability to impose bans on or more stringent  
               standards for residential water softeners.

          Opponents from the water softener industry point to the long  
          history of legislative debate over limitations on softeners, and  








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          assert that local agencies have not justified the need for any  
          change.  They argue that this bill is unnecessary because local  
          agencies that follow the statutory process ultimately may  
          regulate water softeners, noting two cities that now regulate  
          water softeners.  Bill advocates respond that salinity discharge  
          standards have been increased, making it more difficult to  
          comply and requiring urgent action that cannot be delayed to  
          complete a multi-year, costly study of salinity inputs.    

          Some opponents suggest that this bill is "outlawing an industry  
          and denying citizens the right to improve the quality of their  
          water."  These opponents do not explain that there are  
          alternatives to the self-regenerating water softeners that  
          discharge significant amount of salts into public waste water.   
          No one has a "right" to discharge pollutants into the public.   
          This bill allows local regulation of salinity inputs where the  
          community has a problem with salinity discharges or recycling,  
          but does not outlaw the water softener industry.  By allowing  
          each agency to make the determination how to regulate salinity  
          inputs, this bill allows tailored responses to specific problems  
          facing each community, which may differ.

           May 28 amendments  :  Recent amendments concentrate local agency  
          controls of residential salinity inputs on regulation of water  
          softeners.  This emphasis shifts attention away from the salt  
          discharges toward the water softeners.  The amendments may  
          discourage local sewer agencies from adopting economic  
          incentives or disincentives for reducing such salinity  
          discharges to local sewer systems.  The author may consider,  
          here or in the Senate, adding clarifying language that would  
          protect local agency discretion to adopt an ordinance tailored  
          specifically to the local sewer system and community needs.

          The bill's requirement of compensation for removal of water  
          softeners is not necessarily required by the United States  
          Constitution's Fifth Amendment requiring just compensation for  
          government taking of private property.  The compensation  
          requirement in this bill would be a policy decision of the  
          Legislature that payment should be made to those who discharge  
          salt to the sewer system, regardless of whether they have a  
          right to such compensation.  This contradicts the more common  
          policy of "polluter pays," in which the polluter or discharger  
          pays to reduce and/or clean up the discharge.  Requiring local  
          agencies to pay compensation will discourage those agencies from  
          choosing this option.  The author responds that local agency  








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          supporters of the bill have indicated that paying compensation  
          for removing water softeners is often cheaper than the cost of  
          building a reverse osmosis treatment plan to remove the salts  
          coming from softeners.

          The compensation requirement is also ambiguous as to its  
          application to ordinances that bar use, but do not require  
          removal, of water softeners.  Such a prohibition on use would  
          render a water softener useless and eliminate any value.  While  
          the Constitution may not require compensation, this bill's  
          policy may.  A court may find compliance with this proposed  
          statute requires compensation, or a local agency may avoid the  
          ambiguity and any resulting conflict or litigation by paying the  
          compensation.

           
          Analysis Prepared by  :    Alf W. Brandt / W., P. & W. / (916)  
          319-2096 



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